Cheryl Hung VP, Consumer Insights Dig ig In Insights
METHODOLOGY SUMMARY Interviewing Survey offered April 23 to May in both English 7, 2019 and French 2,628 respondents Aged 18+ Online data Nationally representative of collection region, age, gender. (Ethnicity quota set for East and Southeast Asians, South Asians)
Past-day Beverage Penetration
Past-day coffee penetration remains strong PERCENT DRINKING ANY COFFEE BEVERAGES PAST-DAY 100 90 72 72 71 80 67 67 67 65 65 65 65 65 64 64 63 63 63 63 62 70 60 Methodology & 50 Season Change (2013) 40 30 20 10 0 '99 '01 '03 '05 '06 '07 '08 '09 '10 '11 '12 '13 14 '15 '16 '17 '18 '19 2019 63% 5
Two competitive beverages see decline in past day Bottled Water Alcohol 50% in 2019 vs. 41% in 2019 vs. 53% in 2018 45% in 2018 6
Past-day EBB and N-EBB Consumption Sustainable PERCENT DRINKING EACH COFFEE TYPE PAST-DAY 72 72 71 67 67 63 55 53 53 53 52 51 23 24 24 17 16 14 9 8 8 7 NA Total Coffee Traditional Coffee Espresso-based Beverages Non-Espresso-Based (EBB)* Beverages (N-EBB)** 2014 2015 2016 2017 2018 2019 7
EBB and N-EBB consumption skews East/Southeast Asians PERCENT DRINKING GOURMET COFFEE SUB-TYPES PAST-DAY Included in Non- 27 Espresso-based 24 24 Beverages (N-EBB) 23 Included in Espresso-based Beverages (EBB) A 14 12 A 10 9 A 8 8 8 8 8 B 6 6 6 5 6 6 6 6 5 5 5 6 5 4 5 4 4 4 4 4 4 3 3 3 3 3 3 2 2 2 2 2 1 1 1 Espresso- Cafe Mocha Cappuccino Espresso Latte Macchiato Caffe Flat Non-Espresso- Frozen Cold brew Nitro coffee based Americano White Based Blended coffee Beverages Beverages (N- Coffee (EBB)* EBB)** Total Caucasian (A) South Asian (B) East/Southeast Asian (C) 8
Coffee Cups
Canadian coffee drinkers drank fewer cups PAST-DAY COFFEE DRINKERS 18+ MEAN NUMBER OF CUPS 3.3 3.2 3.2 3.0 3.0 2.8 2.8 2.7 2.6 2011 2012 2013 2014 2015 2016 2017 2018 2019 10
…but more are drinking larger sized cups CUP SIZE (AMONG PAST-DAY COFFEE DRINKERS) 8 An espresso size cup 9 8 40 A small size cup or 39 mug 35 53 A medium size cup or 52 mug 56 17 A large size cup or 18 mug 21 2 An extra-large size 3 cup or mug 3 2017 2018 2019 11
Less Cups Consumed Out of Home PAST-DAY COFFEE DRINKERS 18+ MEAN NUMBER OF CUPS CONSUMED AT EACH LOCATION 5.5 5.3 4.6 4.5 4.4 4.4 3.0 2.9 2.8 2.8 2.7 2.6 2.5 2.4 2.2 2.2 2.2 2.1 In-Home ONLY Out-of-Home ONLY Both In-Home and Out-of- Home 2014 2015 2016 2017 2018 2019 12
South Asians and East/Southeast Asians drink fewer cups vs. Caucasians PAST-DAY COFFEE DRINKERS 18+ MEAN NUMBER OF CUPS 3.0 2.8 2.2 2.1 Total Caucasian (A) South Asian (B) East/Southeast Asian (C) 13
How Coffee Is Prepared and Consumed
Drip coffee maker and Single-cup brewer remained the two most widely used brewing methods % Using Among Past-day Coffee Drinkers 50 49 47 Drip coffee maker 2014 41 2015 41 2016 39 2017 28 2018 27 2019 29 Single-cup brewer 25 28 27 15
RTD Coffee Is Rising % Using Among Past-day Coffee Drinkers 2 2014 3 2015 2016 3 RTD in a bottle or can 2017 3 2018 4 2019 5
RTD Consumption is driven by younger consumers RTD Coffee 18-24 25-34 35-49 50-64 65-79 (A) (B) (C) (D) (E) % Drinking Among 16 10 CDE 4 D 2 2 Past-day Coffee Drinkers 17
… and by East/Southeast Asian Canadians RTD Coffee East/Southeast Caucasian South Asian Asian (A) (B) (C) % Drinking 4 7 13 A Among Past- day Coffee Drinkers 18
Where and When Coffee Is Consumed
Out of home preparation is driven by East / Southeast Asian PERCENT DRINKING PAST-DAY BY PLACE OF PREPARATION – BY ETHNICITY East/South Caucasian South Asian east Asian Total (A) (B) (C) In Home 78 82 68 64 (Net) Out Of 40 37 41 53 A Home (Net) Among Past-day Coffee Drinkers 20
Usage of app services for ordering coffee is still niche PERCENT OF PAST-DAY PERCENT OF PAST-DAY COFFEE DRINKERS WHO COFFEE DRINKERS WHO ORDERED COFFEE ORDERED COFFEE THROUGH AN APP PAST-DAY THROUGH AN APP PAST- WEEK 7% 7% 2% 1% 2018 2019 2018 2019 21
Loyalty card use is trending up PERCENT OF PAST-DAY PERCENT OF PAST-WEEK LOYALTY CARD USE LOYALTY CARD USE AMONG PAST-DAY AMONG PAST-DAY COFFEE DRINKERS COFFEE DRINKERS 20% 16% 10% 6% 2018 2019 2018 2019 22
Planned/Impulse Purchase of Coffee to Prepare In-Home 2019 Age 2019 Ethnicity PERCENT PLANNED/IMPULSE PURCHASE South East /SE OF COFFEE TO PREPARE IN-HOME 18-24 25-34 35-49 50-64 65-79 Caucasian Asian Asian (A) (B) (C) (D) (E) (F) (G) (H) I know exactly what brand I 41 47 29 34 36 40 36 21 35 will buy before I walk into ABC ABC 37 the store I know exactly what type I 19 24 DE 24 DE 21 DE 16 14 20 16 25 will buy 20 I generally know what I am 31 29 28 28 27 25 27 31 31 looking for, but also browse 28 the aisle 3 6 DE 3 4 2 2 3 6 4 I usually buy on impulse 3 2018 12 12 11 11 13 12 11 12 20 F I usually buy what is on sale 12 2019 23
Brewer Types At Home
Drip coffee maker, Single-cup brewer and Instant coffee are Top 3 brewing methods owned by Canadian households PERCENT WHO HAVE BREWER AT HOME 59 Drip coffee maker 59 46 Single-cup brewer 44 42 Instant coffee 41 2018 24 French press/plunger 23 2019 13 Espresso machine 11 9 Bean-to-cup brewer 9 5 Pour over (e.g. Chemex) 5 25
Single-Cup Ownership
The following types of single-cup brewer were asked in 2019 survey (past-day, past-week, and workplace brewing method): (Only asked for workplace coffee) (Only asked for workplace coffee) 27
Keurig, Tassimo and Nespresso are the three most widely owned brands by Canadians Single-cup Brewer Ownership among Total single-cup brewer owners 62 Keurig 67 20 Tassimo 21 13 Nespresso 14 2018 5 Dolce Gusto 4 2019 3 Verismo 1 2 Other 2 4 I don't know 4 28
Keurig, Tassimo and Nespresso Owner Profile • Skews Atlantic ( 82% ), • • Skews Quebec ( 21% ) vs. No region, age or ethnic Least likely to be owned skews Atlantic (5%) • Skews 18-34 year olds in Quebec (57%), • No age skews ( 19% ) vs. Older (9-13%) • Skews Caucasians ( 70% ) • Caucasians least likely vs. South Asians (58%) to own (11%) vs. South & East Asians (52%) Asians + East Asians ( 22-27% ) 29
Overall Opinion of Single- Cup Brewers Rated Single-cup Brewers As Excellent / Very Good (%) 50% 51% 52% 49% 2016 2017 2018 2019
Positive perceptions of SC brewers driven by Caucasians Rated Single-cup Brewers As Excellent / Very Good (%) East/Southeast Caucasian South Asian Asian (A) (B) (C) 51 C 43 39 31
Single-cup brewers in Canadian households continue to age 9 2019 - 21% owned 13 Less than 6 months 9 9 for less than 1 year 8 vs. 22% in 2018 24 16 6-12 months 13 14 13 40 35 1-2 years 27 26 2019 - 55% owned 24 26 for 2 years or more 32 2-4 years 35 vs. 52% in 2018 34 30 7 10 More than 4 years 15 18 25 32
Nearly half single-cup brewer owners claim to use eco-friendly pods PERCENT WHO PURCHASE POD TYPE AMONG SINGLE-CUP BREWER OWNERS Conventional pods 43 Eco-friendly Recyclable pods 34 NET: Compostable pods 47% 21 I don't know 19 33
Consumers are open to switching brands for eco-friendly pods OPENNESS TO SWITCHING BRANDS FOR ECO-FRIENDLY PODS (%) Definitely/ Probably would switch Recyclable pods (2018) 30 46 18 6 76 75 Recyclable pods (2019) 31 44 18 7 Compostable pods (2018) 28 47 18 7 75 Compostable pods (2019) 71 30 41 22 8 Definitely would switch Probably would switch Probably would not switch Definitely would not switch 34
Certifications and Premium Coffee Perceptions
Demand for BPI Compostable and CBD coffee is niche % Much / Somewhat more likely to buy BPI Compostable Includes added CBD Certification: (cannabidiol): 33% 16% (Rank # 16 of 24) (Rank # 24 of 24) 36
Premium coffee is defined by premium beans and price % Agree Completely / Somewhat on Statements about Gourmet Coffee 72 The coffee is roasted from premium beans 68 The coffee is more expensive than other types of coffee The coffee comes from a region that is known for producing 65 The coffee comes from a region that is known for… good coffee 64 The coffee has specific quality certifications 59 Gourmet coffee tastes much better When buying gourmet coffee for home-use, it usually 57 When buying gourmet coffee for home-use, it usually… comes in attractive packaging 56 The coffee is a brand name I recognize 51 It is artisanal coffee 37
KEY TAKEAWAYS OOH Activation: Loyalty cards over apps In-Home: Single-cup Coffee are aging. consumption Opportunity to get remains high excited over eco- among Canadians friendly innovations?
Thank You! Cheryl Hung (647) 244-7606 diginsights.com linkedin.com/company/dig-insights cheryl@diginsights.com 372 Bay Street, 16th Floor Toronto, Ontario M5H 2W9
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